Offshore staff

Brazil -- Petrojarl ASA's subsidiary, Petrojarl Production AS, has been awarded a contract by Petrobras to supply an FPSO for the Siri project in Brazil. The contract will be assigned to Teekay Petrojarl Offshore LP, its joint venture with Teekay Shipping Corp. The Siri field is located in the Campos Basin located off the southeastern coast of Brazil.

The contract is for a two year firm period, with options for Petrobras to extend the contract an additional year. The FPSO is scheduled to start production on location at the Siri field during 1Q08. It is anticipated that the vessel will be suitable for redeployment in other offshore fields after completion of the Siri contract.

10/5/06